Purplebricks has made the shock announcement that its CEOs in both the UK and US are to leave the hybrid agency at the same time.
The statement has been made as the company has cut its revenue forecast for the year by 20% from between £165m and £175m to between £130m and £140m. It says the “anticipated amount of recognisable revenue will not be sufficient to meet expectations for this financial year”.
“Although there are macro and industry headwinds across markets we are well placed to capitalise on the significant opportunity for growth that exists in each country, albeit not entirely as we would have wanted before our year end,” says Group Chief Executive Michael Bruce.
The drop in its predicted earnings comes just two months after the hybrid agency reduced its upper forecast for the year from £185m to £175m.
UK chief Lee Wainright is to quit the hybrid agency ‘shortly’ for personal reason after just two years at the helm. Eric Eckhard, who has run its US operation also for two years, is leaving too although Purplebricks’ has given no reason for his departure.
In the UK Wainright’s role is to be filled for the time being by Vic Darvey (left), the company’s global Chief Operating Officer who joined earlier this year from MoneySuperMarket.com.
“Lee played an important role in helping Purplebricks become the UK’s largest estate agent,” the company says.
In the US Eckhard’s departure has triggered Group CEO Michael Bruce to step in and run the operation, who says he is “excited to be taking the reins of the US business”.
“The UK is leading the way with continued profitable growth and a strategy to deliver greater success,” he says. “The Board remains confident of the long-term growth potential of the business and the opportunity to deliver substantial value for shareholders.”